far 101112 a 1112021

  1. GAAP relevant to employers’ accounting for pensions apply primarily to defined benefit pension plans. It defines the projected benefit obligation as the
    Present value of benefits accrued to date based on future compensation levels.
  2. The PBO is measured using assumptions about ------------------------------------.
    The PBO is measured using assumptions about future compensation levels.
  3. A -----------------------------defines an amount of pension benefits to be provided to each employee
    A defined benefit plan defines an amount of pension benefits to be provided to each employee
  4. In the rare cases in which an entity cannot reasonably estimate the fair value of equity instruments at the grant date, the measurement is based on ----------------------
    In the rare cases in which an entity cannot reasonably estimate the fair value of equity instruments at the grant date, the measurement is based on intrinsic value
  5. ----------------------- is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset.
    Intrinsic value is a measure of what an asset is worth. This measure is arrived at by means of an objective calculation or complex financial model, rather than using the currently trading market price of that asset.
  6. If a premium on a bonds payable transaction is not amortized, what are the effects on interest expense and total stockholders’ equity?
    interest expense would be overstated

    total stockholders equity would be understated
  7. Overstating an expense will ----------------- net income.
    Overstating an expense will understate net income.
  8. ------------------- an expense will understate net income.
    Overstating an expense will understate net income.
  9. A liability arising from a loss contingency should be recorded if the
    Contingent future events will probably occur and the amount of the loss can be reasonably estimated.
  10. A material contingent loss must be accrued when the following two conditions are met:

    It is ---------------- that, at the balance sheet date, an asset has been impaired or a liability has been incurred.

    The amount of the loss can be ----------------- estimated.
    A material contingent loss must be accrued when the following two conditions are met:

    It is probable that, at the balance sheet date, an asset has been impaired or a liability has been incurred.

    The amount of the loss can be reasonably estimated.
  11. The market price of a bond issued at a discount is the present value of its principal amount at the market (effective) rate of interest
    Plus the present value of all future interest payments at the market (effective) rate of interest.
  12. A 15-year bond was issued in Year 1 at a discount. During Year 10, a 10-year bond was issued at face amount with the proceeds used to retire the 15-year bond at its face amount. The net effect of the Year 10 bond transactions was to increase long-term liabilities by the excess of the 10-year bond’s face amount over the 15-year bond’s
    Carrying amount.
Author
Joens1313
ID
354158
Card Set
far 101112 a 1112021
Description
far 101112 a 1112021
Updated